Comments on: Weird acquisition of Countrywide by BAC http://www.1stMillionAt33.com/2008/05/weird-acquisition-of-countrywide-by-bac/ A site to share my tips, tools, and humble thoughts on the journey to wealth Sun, 02 Oct 2011 19:26:45 +0000 hourly 1 http://wordpress.org/?v=abc By: dan http://www.1stMillionAt33.com/2008/05/weird-acquisition-of-countrywide-by-bac/comment-page-1/#comment-4185 dan Wed, 07 May 2008 23:47:25 +0000 http://www.1stMillionAt33.com/2008/05/weird-acquisition-of-countrywide-by-bac/#comment-4185 Will Countrywide pass their FDIC deposits to BAC? Will Countrywide pass their FDIC deposits to BAC?

]]> By: dan http://www.1stMillionAt33.com/2008/05/weird-acquisition-of-countrywide-by-bac/comment-page-1/#comment-4184 dan Wed, 07 May 2008 23:47:04 +0000 http://www.1stMillionAt33.com/2008/05/weird-acquisition-of-countrywide-by-bac/#comment-4184 Will Countrywide pass their FDIC deposits to BAC? Will Countrywide pass their FDIC deposits to BAC?

]]> By: Joe http://www.1stMillionAt33.com/2008/05/weird-acquisition-of-countrywide-by-bac/comment-page-1/#comment-4183 Joe Wed, 07 May 2008 23:20:04 +0000 http://www.1stMillionAt33.com/2008/05/weird-acquisition-of-countrywide-by-bac/#comment-4183 My guess is this is just bad reporting. Companies buy parts of each other all the time. It could be that BOA is pushing to have countrywide spin off its mortgage acquisition and retail banking businesses from the mortgage securitization and investment portions. The debt would stay on the investment part of the business. The people, retail offices, marketing, and backend systems could be sold at a high price to BOA, while the debt and consequences for stupidity stay with the countrywide equity holders. The shareholders really can't complain. Countrywide is bankrupt...there is no value in the company apart from selling off the pieces. With no sources of capital they can not hope that a restructuring would make them profitable, since you can not lend with out some capital. They have to sell something, and it looks to me like BOA is making an offer. My guess is this is just bad reporting. Companies buy parts of each other all the time. It could be that BOA is pushing to have countrywide spin off its mortgage acquisition and retail banking businesses from the mortgage securitization and investment portions. The debt would stay on the investment part of the business. The people, retail offices, marketing, and backend systems could be sold at a high price to BOA, while the debt and consequences for stupidity stay with the countrywide equity holders.

The shareholders really can’t complain. Countrywide is bankrupt…there is no value in the company apart from selling off the pieces. With no sources of capital they can not hope that a restructuring would make them profitable, since you can not lend with out some capital. They have to sell something, and it looks to me like BOA is making an offer.

]]> By: James http://www.1stMillionAt33.com/2008/05/weird-acquisition-of-countrywide-by-bac/comment-page-1/#comment-4181 James Wed, 07 May 2008 06:17:01 +0000 http://www.1stMillionAt33.com/2008/05/weird-acquisition-of-countrywide-by-bac/#comment-4181 Yeah, aren't there legal restrictions that say they have to assume the debts? I'm not an expert on securities law, but this seems too out of the ordinary to be true. Yeah, aren’t there legal restrictions that say they have to assume the debts?

I’m not an expert on securities law, but this seems too out of the ordinary to be true.

]]> By: Josh http://www.1stMillionAt33.com/2008/05/weird-acquisition-of-countrywide-by-bac/comment-page-1/#comment-4175 Josh Tue, 06 May 2008 15:12:36 +0000 http://www.1stMillionAt33.com/2008/05/weird-acquisition-of-countrywide-by-bac/#comment-4175 What will happen to people with Countrywide mortgages? What will happen to people with Countrywide mortgages?

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